Collectible Markets Still Red Hot …

While gold and silver are temporarily back in bear markets, the collectibles markets remain largely in a bull market, a sign of the times.

For instance, the rare coin market continues to go nuts. Some examples of record sales include …

— A 1794 Flowing Hair silver dollar, for a whopping $10,016,875

— An 1804 Type I silver dollar for $3,877,500

— A 1913 Liberty Head nickel for $3,172,500

All told, according to the Luxury Investments Index in the recently released Knight Frank 2014 Wealth Report, rare coins increased 10 percent in value over the past year and have increased an amazing 227 percent the past 10 years.

And according to the Professional Numismatists Guild, the U.S. market for high-quality, rare coins was about $5 billion in 2013 with a dozen individual coins selling for $1 million or more at auction last year.

But it’s not just rare coins that continue to do well as an alternative wealth-preserving asset. The high-end diamond market also remains robust.

Last week, for instance, Petra Diamonds Ltd. sold a 122.52-carat blue diamond for $27.6 million — a whopping $225,269 per carat. Last week, Petra also unearthed a 232.08-carat white diamond at the same mine, which is likely to go for much more.

Meanwhile, China’s demand for diamonds is also exploding higher. Polished diamond sales in China rocketed 14 percent higher last year alone, double the pace of growth seen in the U.S.

Sales of diamond jewelry to the Chinese have been the fastest growing in the world, averaging about 21 percent a year over the last decade. China now accounts for 13 percent of global demand, up from 3 percent just 11 years ago.

The art market also remains on a tear. Especially contemporary art. Sales of contemporary art at public auctions surpassed $2 billion for the first time last year, the Paris-based arts-data organization Artprice said.

The report tallied auction sales between July 2013 and July 2014, and it found that contemporary art sales grew 40 percent from the previous year. The number of big-ticket items that sold for over 10 million euros ($12.8 million) more than doubled in the period.

Those who follow the art market will remember the record-breaking Christie’s auction last November that saw buyers walk away with the most expensive publicly auctioned piece of art ever, Francis Bacon’s $142.4 million Three Studies of Lucian Freud (1969).

The same auction also saw Jeff Koons’ “Balloon Dog” fetch an amazing $58.4 million — the most expensive contemporary piece ever sold at a living artist auction.

Why are the collectible markets still going crazy?

The answer is simple and obvious: Savvy investors still want to get off the grid as much as possible. They want to minimize taxes. They want to hide and preserve wealth. They want privacy, to the extent possible in today’s world of authoritarian governments.

And why do they want all that? Because savvy investors know that …

1. The western governments of Europe and the U.S. will one day, not too far off, implode. And that …

2. As a result, it’s only a matter of time before the current monetary system also collapses, ushering in some of the most chaotic times the world has ever seen.

Think of the fall of Rome. The Fall of Byzantium. And countless other governments that have come and gone, countless revolutions that have changed the course of history, and more.

It’s happening. In Europe. In the Middle East. In Hong Kong. In Africa.

And soon, it will come to our own shores. The cycles of war continue to ramp up, and they too are a sign of the times. Bankrupt governments, lashing out at their own people and others, trying to raise revenues or deflect attention away from their problems, trying to conquer and convert other people to their views.

That’s where we’re headed. That’s where Western society is going. Toward chaos, breakdown and revolution.

But besides the collectibles markets, there are other investments that are also thriving. The correction I have been warning you about in equity markets may be here, but long-term the Dow Industrials and the safest of the safe major U.S. companies are destined to move much, much higher.

And while the shine may be temporarily off gold and silver, don’t count them out. Long-term, their bull markets are also very much intact, and I fully expect that we will still see $5,000 plus gold and $125 plus silver in the not-too-distant future.

U.S. real estate too is also looking good long-term. The threat of rising interest rates will not derail that market. If anything at all, it will make the property markets that much more bullish, as investors, especially foreign investors, scramble to buy property in the U.S. before mortgage rates explode higher.

The soaring U.S. dollar, which I forewarned you about, is also attracting foreign investors to our property markets.

Bottom line: We live in strange times, times that will be more chaotic than ever seen in our lifetimes.

As a result, don’t accept the status quo. Don’t accept old economic rules, or relationships between different markets.

Continue to think out of the box, as I do, and you will indeed protect and grow your wealth.

Stay safe and God bless,

Best wishes,

Larry

Larry Edelson, one of the world’s foremost experts on gold and precious metals, is the editor of Real Wealth Report and Supercycle Trader.

Larry has called the ups and downs in the gold market time and again. As a result, he is often called upon by the media for his investing views. Larry has been featured on Bloomberg, Reuters and CNBC as well as The New York Times and New York Sun.

{43 comments }

RobertWednesday, October 1, 2014 at 11:35 am

Come on man!!
Right now the gold market is sitting just barely north of 1200, with a possibility of going down to 1180 or so, putting in a solid triple bottom (which really could be the case anywhere in this current area) and then shooting straight up for awhile, OR falling more to start a whole new 100 leg down (1100 – 1200)….
…and the above is all you could figure out to write about today??? …for your ONCE a week post??? Meanwhile, Mike Larson is posting almost everyday, and sometimes more!!??

HowardThursday, October 2, 2014 at 7:16 pm

Robert

It is true that Mike is putting in a sterling effort and gold is looking weak at the moment. There is not much more to talk about until the likes of GS and others see buy signals to turn this weakness around. That will come at lower prices for gold. However, as fellow investors we need each other to make positive calls in either direction with useful information that may make us all some money. Just complaining about lack of direction on a free blog won’t help any of us.

Frank JohnsonWednesday, October 1, 2014 at 12:10 pm

I agree. You have lost your most important asset, Larry: credibility. Why in the world should we investors pay you money in return for such poor advice? Is there currently a stock, anywhere, that you have recommended on the long side over the past year that is trading higher since you recommended it? Maybe, but I don’t know what it is. I bit on your Number One gold stock–IAG. And even when gold stocks were briefly rallying, IAG did not participate. Did you do your due diligence on IAG’s fundamentals before you touted it? Apparently not.
You enjoy boasting. Bad idea. “Pride goeth before the fall.” Your fall has been spectacular!

Tired of listeningWednesday, October 1, 2014 at 1:40 pm

Frank, Robert (and all your other buddy readers that share your views), please stop reading Larry’s free post and exchange email so you can rant privately about the value of a free blog.

zzzzzWednesday, October 1, 2014 at 3:41 pm

yes it’s a free blog but it’s meant as advertising to buy his services. We want truth and accountability – things that have been lacking for a while here.

robWednesday, October 1, 2014 at 2:57 pm

We will still see $5,000 plus gold and $125 plus silver in the not-tooooooo-distant future. Ha-Ha

The soaring U.S. dollar, which I forewarned you about, is also attracting foreign investors to our property markets.- Ha – Ha,.what happened to end of the dollar and yuan renminbi ruling the world that you forewarned us about?

Bottom line: We live in strange times, and i don’t have a clue,.Larry x

.

ewyWednesday, October 1, 2014 at 4:40 pm

This guy changes his views more than the weather he was saying buy gold all summer long and now its fallen he saying it will go lower right when its about to rally of long term support.

Buy gold now

JohnWednesday, October 1, 2014 at 5:19 pm

Couldn’t agree with you more, ewy. There is no mention of gold because Larry has no idea where it is headed, eventually it will reach $5000/oz. or maybe go down to $300 to $600 first before it does. The only question is WHEN???? What goes up, will come down and vise versa. There are some blog writers out there warning of a crash yet to come. Question everything, believe nothing except if some says to. lol

randyWednesday, October 1, 2014 at 6:11 pm

most gold newsletter writers are as clueless as this guy, but the difference is his arrogance is unsurpassed. i could call any move up or down in any market AFTER THE FACT just like this guy does and claim i’m a genius. once again i remind all current real wealth subscribers, not to long ago he said he would be on top of this as he had slacked off all year. really?? he’s been persona non grata. does he still have subscribers??

HeidiThursday, October 2, 2014 at 3:21 pm

randy … let’s go for it …let’s call the next move … a bit of a rally from this overbought situation right now in g/s and miners only to sink again to new lows . New lows into 2015 …how is that ?

randyFriday, October 3, 2014 at 9:40 am

have no doubt miners will head south until late 2015 unless QE is reinstated. today’s phony job report is just more manipulation which has caused a jump in the dollar which currently is negatively impacting metals prices. real unemployment is easily at 20%. 70 million people on stamps or disability (the latter which is bereft with fraud both by the feds and those applying) does not translate to an increase in employment. when the big boys are done buying the physical (as i have continued to do for 10 years with silver. purchasing mining stocks is new for me and i won’t be doing that again until gold hits $1400) the metals will begin to ascend. physical metals are the only thing in over 35 years of investing that i buy via dollar cost averaging. i fully recommend buying physical silver up to $50 per. i quit buying gold at $500. the ecb starting to print again is good news for gold, but they are at the panic point. the us is getting closer to that point, but not yet. without QE the whole thing crumbles. when they are ready for a collapse they will stop QE for good or WWIII (coming within 10years) will collapse it. by the by, edelson isn’t the only gold guy who gets it constantly wrong. another guy with the initials M.S. has been off base all year and also refuses to admit he’s wrong. looks like armstrong has it right.

randyFriday, October 3, 2014 at 9:44 am

bereft has been wrongly used. i apologize. “rampant with fraud” is what i meant. don’t drink coffee to wake up and maybe i should…LOL!

randyWednesday, October 1, 2014 at 6:12 pm

that would be too not to.

jonWednesday, October 1, 2014 at 10:38 pm

last week his advice was stay openminded and folllow the money… ha ha this guy is like captain obvious.. dont worry hes right as rain. even tho he gets 1/10 picks that make money

MarlonWednesday, October 1, 2014 at 11:56 pm

Larry,

Larry,

Thank you for your thoughts and well wishes, your advise and views about the market is GREAT and NEEDED to see the TRUTH about investing. The others who keeps on giving negative comments are just traders…(who really do not know what investing is all about).

Thanks Again and Stay Safe too!

bart snowThursday, October 2, 2014 at 2:27 pm

Marlon, Which planet are you on?

HeidiThursday, October 2, 2014 at 3:17 pm

Marlon … Whether you are a phony or a total idiot ….one of them will fit you .

AndrewThursday, October 2, 2014 at 12:42 am

Larry,
Trust and credibility has been shaken after your Sept 24 posting . The bottom line is , after this posting I double confirmed I must take all your comment with a pinch of salt !!
I almost signed up for your research report , thank goodness ….

FollyThursday, October 2, 2014 at 2:16 am

If you follow Larry’s advice, you’ll find its not free, it will cost you a lot of money.

HeidiFriday, October 3, 2014 at 1:49 pm

Folly – true but NOW he will do better ? He sold IAG at $ 3.40’s and it trades at $ 2.60 now ( saved something already ) and gold is still at $ 1189 ….should be even less when gold hits $ 1000 .
IAG announced they will sell some assets in Canada …getting desperate to survive ?
Just 1 concern with the miners when gold hits $ 1000 or less – will the Co. survive ? The shares might be cheap but what good will that do if the Co. goes broke ?
A serious problem with miners and a low gold price … only the strong survives .

Larry’s subscription fees and advice, if you follow it, is a sure route to the poor house. Not
for Larry of course, I doubt that he does any trading at all. Makes his money off fools.

MarlonThursday, October 2, 2014 at 6:15 pm

Sorry for all the cry babies, you must be short sellers or traders…..I am on real assets, so I am still in this planet…your hopes are in the air….trading with sharks….

Larry is correct with his observations…

HeidiFriday, October 3, 2014 at 1:43 am

Marlon … Short traders are cry babies ? Take a look at ZSL Dust JDST compare to ? GLD SLV HUI and others ? Are you seeing the world up side down ?

zzzzzFriday, October 3, 2014 at 11:22 am

don’t feed the trolls :)

MarlonFriday, October 3, 2014 at 12:47 pm

Hi Heidi,

buy shares of mining companies….oil companies….utilities….ALL IN GREAT DISCOUNTS WITH IT’s TRUE COST…this are called investment…buying OPTIONS and fund shares on hope it will bring a short term favorable return is called TRADING :)….those who buy options and funds will be greatly disappointed….

Marlon

randyFriday, October 3, 2014 at 4:46 pm

if you buy miners and oil companies now you’re a fool. sell short, you’ll be very smart.

BobFriday, October 3, 2014 at 9:33 pm

So lets see here:

-Larry tells subscribers to short the double bottom
-Then says the bottom is in when gold rallied to 1300
-Now on facebook he’s been saying for 3 weeks a massive short rally will start any minute

None of these have been right, still think he hasn’t sold out to the banks??

A guy who is the “worlds greatest gold and market forecaster” with 30 years experience calling every major turn in the gold market, plus the 1987 mkt crash, can’t be that bad or stupid.

Come on Larry, you got something to tell us?

MarlonSaturday, October 4, 2014 at 1:09 am

Hi Randy,

Only fools and liars play options…either you are IGNORANT or a SHARK…..

If I have $1 in 2004 and one share of an Oil Company cost a $1 in that year. If the same company with the same number of share, now cost $1 per share today (2014)…who is a fool to not buy a share of that company?

YOU TELL US RANDY…what is the value of the dollar in 2004, 2008, 2012 and now 2014? Only those who are LIARS promotes worthless options….

Marlon

HeidiSaturday, October 4, 2014 at 4:42 pm

Is Larry getting smarter ? In the above write-up he says …. gold to $ 5000 / silver to $ 125 and now he gives no date because he realizes now that it won’t be 2016 as he said before – he is getting smarter …so he just says in the not so distance future . If he would tell you that it takes until 2025 ( or longer !!! ) would you handle you gold/silver portfolio differently as when he said ” Gold to $ 5000 by 2016 ” ? Keep that in mind …don’t expect $ 5000 to soon – it can financially ruin you . It pays to read reliable people !!!

EricSaturday, October 4, 2014 at 8:03 pm

For heaven’s sake. Larry has made me a boat load over the years. This past year has been an anomaly. By all accounts, gold should have seen a rally by now, but the market is growing increasingly complex. There was a time when moves in metals were predicated on a limited number of drivers. Today, there seems to be an infinite number of pressures that push metals from all sides. Even the rapid proliferation of ISIS, which no one (to include the CIA) predicted, is producing third order effects on both US stocks and commodities.

In short, if you have been both following metals and reading Larry’s perspective for any amount of time (like perhaps a decade), you would see this past summer as a blip in the radar.

bobSunday, October 5, 2014 at 1:59 am

Larry is that you…..

TomSunday, October 5, 2014 at 2:49 am

No Larry, we don’t live in strange times. We live in normal times, when bad news and weird outbreaks strike like the plague. In spite of the negative headlines, economies and equities keep growing. Yes, there are pullbacks, but over the long haul, stocks keep averaging about a 12% annual growth rate. Much better than gold or collectibles. My advice? Get some long-term perspective and stop freaking out over the latest news of the day.

BillSunday, October 5, 2014 at 6:27 pm

Larry You have always been right and I have talked to others to listen to you but now with the call on gold and silver both you and I have egg on our face. I told them to backup the truck as you told us to and I and my friends got run over. If gold can’t go up now what on earth will it take!!!

EricSunday, October 5, 2014 at 8:38 pm

Earlier this summer, Larry said to buy with caution. He said to invest what you could live without. The reason gold has been sideways, is because the American stock market looks fabulous next to the rest of the markets. Subsequently, that’s where scared money is heading right now. Don’t forget how ‘global’ the world has become though. We can’t avoid paying our dues forever.

EricSunday, October 5, 2014 at 8:53 pm

Bill, be patient. I’ve been trading metals since 2003. I remember major consolidations in 2007 and 2010. All the naysayers came out in droves, but both turned out to be important consolidations in a long upward trend. Remember, gold traded at $350 just ten years ago.

HeidiTuesday, October 7, 2014 at 1:38 am

Eric … 1st there was no consolidation in 2010 … 2008 was a low and none took 5 years like this one will . Patience is eating your money away if stay the course in PM’s – very bad advise .
If you held HL in 2008 at the high $ 11 ( because you didn’t know it would sink like Larry didn’t know either in 2008 ) after the plunge HL moved up again into 2011 – share price again $ 11 … you haven’t made a penny since 2008 and won’t again until 2017 .

Thought your integrity and knowledge was a step above others- – you have proven me wrong!!!

Over the summer your Subscription “Real Wealth Report”; AND your Free “Money and Markets” reports pushed Gold Investments. All your BS recommending “BACK UP THE TRUCKS” proved to be CRAP.

Only AFTER Gold got slammed in late August/ early September did your usual dated monthly RWR go negative in mid- September- AFTER THE DAMAGE WAS DONE!!!!!. YOU DID NOT EVEN HAVE THE COURTESY OR GUTS TO SEND EARLY “SELL or ALERT BULLETIN” TO PAID RWR SUBSCRIBERS!!!

Like the wise Israelis’ finally learned- NEVER AGAIN!! You are only another CARNIVAL BARKER!!!!

MarkMonday, October 6, 2014 at 3:55 pm

Notice how Larry says there is more downside to gold on his facebook sight, now today it rally’s after he was saying for 3 weeks wait for the short squeeze.

The jig is up and Larry has sold out to the banks…

RSWednesday, October 8, 2014 at 6:09 am

I’m using Larry’s newsletter only to follow the gold market. If Larry is no good, what gold investment newsletter would you recommend me subscribing to?

William JamesWednesday, November 26, 2014 at 1:46 am

Common guys

We all had a suspicion that all this is about selling subscriptions.

Play on people greed and fear and take their subscription money.

When it all goes ban just lie low for a while and bring out another spokesperson until another bang.